UK asset managers tap into India on verge of investment boom

More Western asset managers look set to follow in the footsteps of Schroders and Invesco by acquiring stakes in Indian fund management companies to take advantage of a growing interest in investments.

In September, Schroders acquired a 25% stake in India’s Axis Bank through its Singapore arm, with plans for the groups to distribute each other’s products in their respective markets. More recently, Invesco, the US parent of Invesco Perpetual, took a 49% stake in Religare Asset Management for $88m. Although market analysts say the deals are not particularly cheap, they could position the groups to take advantage of the rising middle class in India, and diversify away from developed markets where penetration is already very high. Neal Epstein, senior credit officer for Moody’s, said th...